Expanded Child Tax Credit Likely Isn’t Coming Back. Now What?

This year has brought fair winds and following seas for semiconductors, carried interest, and even prospective electric vehicle drivers, but proponents of the expanded child tax credit haven’t had such smooth sailing. While advocates must continue to push for an extension, work can be done now to improve access to the existing credit for those who qualify.

For tax year 2021, the fully refundable expanded child tax credit was worth up to $3,600 for children under the age of 5, $3,000 for those 6 to 17, and $2,000 for all others. According to Bloomberg’s 2023 projected tax rates, the refundable portion of the child tax credit will not exceed $1,600.

What happened—and more important, what can be done?